Avoiding negative swaps

I was wondering if it would contribute positively to your edge if you're only taking trades in the direction of positive interest, especially if you are a trader that hold positions longer than few days.

I think over the long run, the negative swaps rob away your profits. So maybe just trading in one positive direction, can contribute a small edge.


wondering what everybody thinks

But what if the overall bias is in the opposite direction?

Besides, isn't negative swap considered one of the costs (overhead) of doing business? Like broker fees and broadband connection?

To get too wrapped up in that negative swap sentiment is not a good idea, IMO. If you are trading relatively shorter time frames, trade the pair for what it's worth. If you are holding millions in a currency unhedged, perhaps not a good idea to suck up those rollovers for to long.

cost of doing business.

It wouldn't hurt but you are limiting the potential number of times and pairs you can trade in a short term position. This would be an ultra conservative trade style and there is nothing wrong with that.